Reform ideas floated and shot down

Article Abstract:

The Auditing Practices Board (APB) 1992 paper on reform 'The Future Development of Auditing' has been widely criticised. Labour MP (Member of Parliament) Austin Mitchell and managing director of Citibank UK John McFarlane berate the APB and the Cadbury Report on Corporate Governance in their paper 'A Better Future for Auditing.' The Chartered Institute of Managment Accountants suggests auditing becomes a separate profession. No firms approve the idea that auditors should owe a duty of care to all stakeholders. The discussion about liability needs urgent solution.

Auditing

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Turning auditors into policemen

Article Abstract:

The Treasury and the Department of Trade and Industry published a report in Mar 1993 recommending bank auditors should report their suspicions to regulatory authorities appointed by the Institute of Chartered Accountants in England and Wales immediately so that action may be taken. The Auditing Practices Board issued a paper on its proposed auditing standards on this matter to guide practitioners for legislation at the end of 1993. Auditors may feel uneasy about their relationship with the client in these circumstances.

Practice, Bank examinations

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Auditors hit back on liability

Article Abstract:

Auditors are reluctant to conduct some reforms because of concern about liability. The Auditing Practices Board issued the first Statement of Auditing Standards in May 1993. It requires auditors to provide more information about their responsibilities, to list matters shareholders should be aware of and to detail any basic uncertainties. The Caparo case drew attention to the audit expectations gap. Leading firms hope to meet ministers from the Department of Trade and Industry to ask for a statutory cap on liability.

Standards, Cases, Accounting and auditing, Liability (Law), Legal liability, Caparo Group Ltd.

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